Coverage of processes: the Business Model (how does an enterprise make money?)

Created by Alex Osterwalder

Business Model explanation by Alex Osterwalder

1.  What is a business model -  it a description of how the enterprise creates and provide value/wealth.  

                                                  Popularized by Peter Drucker, a management guru

Center:   Main Value Proposition -  what is the unique unusual value that the enterprise can deliver'

                                                          the primary target market;   how does the enterprise makes

                                                          the customer GAIN, and/or cures PAIN

2.  Conforms to the brain division:   left and right

   Left                                                                   Right

 1.  Efficiency                                            1,   Creativity

 2.  Internal                                                2.   External

 3.  Cost                                                     3,    Revenue stream

      Cap ex, op ex                                                

        Key Activities                                    Customer relations

        Key Resources                                   Channel

        Partners                                              PTM -->> customer segment matched with product variants

3.  Innovation - can occur in any one, combination or all of the above components.   It is not equal to kaizen incremental improvements.   It is called BMI.  Business Model Innovation